"… When it is evening, ye say, It will be fair weather: for the sky is red. And in the morning, It will be foul weather to-day: for the sky is red and lowering. O ye hypocrites, ye can discern the face of the sky; but can ye not discern the signs of the times?" The Holy Bible
"Many a so-called wise economist ... had not studied past history enough to know that after the greatest advance in history had culminated … the greatest panic in history must follow ... " W. D. Gann

Monday, June 30, 2014

[In US news ...] BNP Paribas's $8.9bn fine is hefty but it's still only a third of the dodgy deals: The French bank's fine over sanctions shows that if you're using the US banking system, make sure you are on safe ground (The Guardian) Guilty plea: BNP Paribas fined $8.8 billion for rogue-regime banking -- ["'Remarkably, BNPP continued to engage in this criminal conduct even after being told by its own lawyers that what it was doing was illegal,' Asst. U.S. Atty. Leslie Caldwell said."] (The Los Angeles Times)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

UK interest rates likely to hit 5% in a decade, says Bank of England deputy: Sir Charlie Bean says borrowing costs will return to pre-recession levels in long term (The Press Association)

Paul Craig Roberts - The Entire U.S. Gold Hoard [In His Personal Opinion] Is Now Gone (King World News) German Gold Stays in New York in Rebuff to Euro Doubters (Bloomberg) Germany gives up plan to repatriate gold from US (The Voice of Russia)

Changing farming practices could cut the intensity of heat waves: No-till farming, which leaves crop debris in place, can protect the next crops. (Ars Technica)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

Heavy Rains Flood Season With Extreme Weather: The threat of flooding, hail and tornadoes is expected in regions throughout the nation and June has proven to be a month of weather extremes. (NBC Nightly News with Brian Williams)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

Bulgarian central bank says banking system under attack (Reuters) The mystery of Bulgaria's bank run: Two of Bulgaria's biggest banks have been under pressure this week from insolvency rumors. The country's central bank has alleged there is a malicious media campaign to discredit its banks. (Deutsche Welle)

How the Clintons went from ‘dead broke’ to rich: Bill earned $104.9 million for speeches (The Washington Post)

US Regulators Close Small Bank in Oklahoma (The Associated Press) The Freedom State Bank of Freedom OK had a troubled assets ratio of 8.8 percent [the national average being 8 percent at this time]. (BankTracker) The Freedom State Bank, Freedom, OK, Closed by Regulators (Problem Bank List) ["... the bank was closed at 4 p.m. Friday due to exhaustion of capital funds ..."] (The Associated Press)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

Thursday, June 26, 2014

French unemployment hits new high despite reforms: Joblessness in the eurozone's second-largest economy, France, has surged to a new high. The latest figures left government officials wondering why recent reforms had done nothing to ease the plight of the labor market. (Deutsche Welle)

Valls’s difficult climb: A stagnant economy underlines how hard it will be for the new prime minister to improve France’s competitiveness (The Economist)

One-in-four SME loans in default at end of last year [in Ireland]: New lending to small business sector static, according to Central Bank report (The Irish Times)

CBC to lose up to 1,500 more jobs: CBC plans to shift its priority to digital and mobile services as part of its five-year plan, the public broadcaster revealed Thursday. (The Toronto Star)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

Wednesday, June 25, 2014

US economy shrinks at fastest rate since recession as harsh winter bites: Output as measured by GDP fell at rate of 2.9% in first three months of 2014, but Wall St confident decline only temporary (The Guardian)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

Tuesday, June 24, 2014

"The economies of Greece, Italy and Spain may attract the attention, but the time bomb is France. The French rely upon government intently, whereas in Southern Europe they have traditionally ignored government. When France goes, so will the Euro." -- Analyst Martin Armstrong (Armstrong Economics)

S&P's Kraemer: euro zone has much to do to cut debt, boost growth (Reuters)

Can Europe’s low growth and high unemployment go on forever?: Many hedge funds have lost small fortunes betting on the inevitability of European change (The Irish Times)

France, Italy join forces against 'high priests of austerity' (Agence France-Presse) Hollande calls for flexibility in EU budget rules: French President François Hollande called on Tuesday for flexibility in applying EU budget rules, just ahead of a key summit in Brussels on Thursday. (Radio France International) Italy's Renzi calls for Europe to change course on austerity (Reuters)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

Only one in three Americans has emergency savings: Low wage growth, high household expenses and student loan repayments are making it very difficult for Americans to prioritize emergency savings. (United Press International)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

Sunday, June 22, 2014

New Government cuts could see a million state jobs go: George Osborne orders 'ambitious' new efficiency drive, to be detailed in the Autumn Statement, for savings and job cuts stretching deep into the next parliament (The Telegraph)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

Tens of thousands march in London against coalition's austerity measures: An estimated 50,000 people in London addressed by speakers, including Russell Brand, after People's Assembly march (The Guardian)

[In the US] RadioShack sinks below $1 for first time ever (Marketwatch)

White House task force charged with saving bees from mysterious decline: President Obama orders research and strategies to try to stop the alarming decline of honeybees and other pollinators (The Guardian)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

[UK] Government borrows £1bn more than expected in May: Analysts are concerned by a shortfall in tax receipts as government struggles to bring deficit in line with target (The Telegraph) Higher UK state borrowing hits struggle to cut deficit: Coalition's deficit reduction stalls when falling unemployment and higher tax receipts should be helping state finances (The Guardian)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

40 maps that explain food in America by Ezra Klein [former Wonkblogger for The Washington Post] and Susannah Locke (Vox)

The death of the American mall: Once-proud visions of suburban utopia are left to rot as online shopping and the resurgence of city centres make malls increasingly irrelevant to young people (The Guardian)

Asciano to cut 500 jobs in latest round of cost cutting: Rail operator the latest large company to axe staff, following a string of major Australian job losses (The Guardian)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

Why The Fed's New Vice Chairman Will Be A Disaster For the U.S. Economy (Forbes)

Support builds for new Glass-Steagall Act: Advocates say a wall between commercial and investment banking would protect consumers (Consumer Reports)

[UK's] Morrisons to cut 2,600 management jobs in stores: Supermarket says move will be part of overhaul aimed at altering ratio of bosses to floor staff and way branches are run (The Guardian) [Anticipated cuts had been around 2,000, as posted earlier here] (Economic Signs of the Times blog)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

There are not enough resources to support the world's population: The world's population is now well over seven billion and growing. We have reached a stage where the amount of resources needed to sustain our population exceeds what is available, argues Professor John Guillebaud from University College London. (The Australian Broadcasting Corporation)

Eurozone inflation drops to five-year low of 0.5%: European Central Bank faces tough task in preventing Europe from sliding into a damaging deflationary spiral (The Guardian)

Europe faces the horrors of its own house of debt: The most likely trajectory is a long period of slow growth, low inflation (The Financial Times)

Groups are paying big money to stop NY lawmakers from passing law that would require GMO food labels: Trade organizations, farm groups and corporate giants such as Coca-Cola and Kraft have spent millions on lobbyists and campaign contributions to defeat the bill. They say there's no proof GMOs are harmful, and that the labels would increase food-handling costs. Supporters of the bill say consumers have a right to know what's in their food. (The New York Daily News)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

Sunday, June 15, 2014

The coming 'tsunami of debt' and financial crisis in America: Forces that caused the world economy to collapse, including income inequality and debt, are again in action, and could drag corporations down in their wake (The Guardian)

Monarch butterfly decline linked to spread of GM crops [June 4] (Canadian Broadcasting Corporation) Monsanto vs. the monarchs: The fight to save the world’s most stunning butterfly migration: North America is on the verge of losing one of its most spectacular phenomena, Chip Taylor tells Salon [June 1] (Salon)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

Unchosen - Yes, Virginia, There Is a Cantor Loss: The surprising defeat of Republican incumbent Eric Cantor by an obscure Tea Party activist has the media searching for its broader meaning. (The Daily Show with Jon Stewart)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

Japan to keep printing money for years to come, so learn to enjoy it: The Bank of Japan will have to mop up the entire issuance of public debt for years to come, covering the budget deficit with printed money by Ambrose Evans-Pritchard (The Telegraph)

[Majority Leader of the US House of Representatives] Eric Cantor Defeated by David Brat, Tea Party Challenger, in G.O.P. Primary Upset (The New York Times) Who Is David Brat? Meet the Economics Professor Who Defeated Eric Cantor (The Wall Street Journal) Haunted House: Eric Cantor’s surprise defeat is a warning to all Republicans: Be very afraid. (Slate)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

Don't threaten me: Merkel lashes out at Cameron after he warned Britain could leave EU if Juncker becomes Brussels chief (The Daily Mail) Labour opposes Jean-Claude Juncker as next European commission president: After Tory pressure to clarify stance, party says its MEPs will try to block appointment as he would 'make reform of EU harder' (The Guardian) Wise Men warn on dangerous delusions of Brexit: EU exit would pose a grave threat to car industry and the City, warns report for Centre for European Reform by Ambrose Evans-Pritchard (The Telegraph) There is life after Europe, but let us stop the triumphalism by Ambrose Evans-Pritchard (The Telegraph blogs)

Public Schools Are Hurting More in the Recovery Than in the Recession (FiveThirtyEight)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

Monday, June 9, 2014

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

Sunday, June 8, 2014

The Great Gatsby delusion: F Scott Fitzgerald’s masterpiece, the emblematic novel of 'the American dream’, is as misunderstood as that clichéd phrase (The Telegraph)

65 Things We Know About NSA Surveillance We Didn’t Know a Year Ago (Gizmodo)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

Another Great Recession level fades as U.S. passes employment peak (Marketwatch blogs) US jobs back above pre-recession peak, but what kind are they now?: US employers added 217,000 jobs in May, pushing the total above the number for 2008. But the service sector led the climb, while factory and manufacturing jobs are still below pre-recession levels. (The Christian Science Monitor) Don't Get Too Excited About the New Jobs Report: The U.S. economy has now recovered the jobs lost during the recession. But there is still a long way to go. (National Journal) The U.S. Economy Finally Hit a Historic Milestone—and It Doesn't Matter: More jobs don't necessarily mean more growth. (The Atlantic)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

ECB's justified action will help but is no panacea for eurozone deflationary ills: European banks reluctance to lend is not for lack of money but preference for bolstering balance sheets instead of making loans (The Guardian blogs) Why negative interest rates won't jumpstart Europe's economy: The European Central Bank has resorted to a seemingly extreme measure, but it's not nearly extreme enough to revive the euro zone (The Week) Why Negative Rates Won't Work In The Eurozone (Forbes)

German ECB Critics Condemn Draghi Rate Cut as Pandering to South (Bloomberg) Southern Europe needs deflation: IFO Institute: Hans-Werner Sinn, President at the Ifo Institute for Economic Research, says that southern Europe needs deflation to improve its international competitiveness, and that ECB policies could slow this process. (CNBC)

Bank of England keeps rates at record low, split seen coming (Reuters)

Management changes at ailing Morrisons could see 2,000 jobs axed: Morrisons had said it had no plans for widespread redundancies, but [the British grocer] is under pressure to cut costs to fund planned price cuts (The Guardian)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.